Divisive Merger At Johnson & Johnson
Mr. Speaker, a jury instructed Johnson & Johnson to pay $5 million in damages to Patricia, a retired teacher with two children and four grandchildren. One month later, she died, at age 61, of mesothelioma, an aggressive form of cancer…
Mr. Speaker, a jury instructed Johnson & Johnson to pay $5 million in damages to Patricia, a retired teacher with two children and four grandchildren. One month later, she died, at age 61, of mesothelioma, an aggressive form of cancer caused by asbestos exposure.
Thirty-five-year-old Christina was a preschool teacher studying for her master's degree when she was diagnosed with mesothelioma. In 2019, a jury awarded her $26 million in her case against Johnson & Johnson.
Gail was 36 years old when she collapsed on her kitchen floor. She was diagnosed with mesothelioma and has
undergone six rounds of chemotherapy, radiation, and major surgeries. Two days into her 2019 trial, Johnson & Johnson struck a deal to pay her damages.
These women, all Californians, are just a few of the now over 40,000 women who want Johnson & Johnson to help cover the millions of dollars in medical expenses they have racked up in their fight against cancer caused by asbestos exposure.
Before we knew asbestos caused cancer, men who inhaled asbestos dust in mines and in industries like shipbuilding got mesothelioma cancer. For decades, women who didn't work in those jobs, but were diagnosed with mesothelioma, wondered how they could have been exposed.
Like asbestos, talc is a naturally occurring mineral that must be mined. During that process, talc can be contaminated by asbestos.
The 40,000 women all diagnosed with asbestos-related cancers all used Johnson & Johnson baby powder for decades on their children and on themselves. The main ingredient? Talc.
Johnson & Johnson sold its iconic baby powder for 60 years, despite their own internal documents showing that their executives, scientists, doctors, and lawyers all knew that some bottles were laced with asbestos.
In 1976, Johnson & Johnson assured the FDA that no asbestos was ``detected in any sample'' of talc produced between December 1972 and October 1973. What it didn't say, what it didn't tell the regulator, was that at least three tests by three different labs found asbestos in the powder, in one case at levels reported as ``rather high.''
Internal documents confirm that Johnson & Johnson willfully misled consumers about the safety of its baby powder.
In a memo to managers, a Johnson & Johnson executive explained that the company's policy of countering negative research about the dangers of talc: ``Our current posture with respect to sponsorship of talc safety studies has been to initiate studies only as dictated by confrontation.'' ``The principal advantage for this operating philosophy lies in the fact that we minimize the risk of possible self- generation of scientific data which may be politically or scientifically embarrassing.''
In this 2013 markup of a statement for Johnson & Johnson's website, you can see that Johnson & Johnson's legal team advised the company against claiming that: ``Our talc-based consumer products have always been asbestos free,'' with the comment: ``We cannot say `always.''' They recognized that the company's talc could have been contaminated in earlier times.
Johnson & Johnson built its fortune on its baby powder. The company's net worth is $440 billion, plenty of assets to help the women poisoned by their products.
Three weeks ago, Johnson & Johnson formed a subsidiary called LTL Management. They then dumped all of their asbestos-related liabilities, including those nearly 40,000 lawsuits, into that shell company. Two days later, LTL Management filed for bankruptcy.
This is corporate chicanery, corporate abuse, because Johnson & Johnson only provided that shell company with $2 billion to cover tens of thousands of asbestos-related lawsuits. Two billion dollars is a big number, but Johnson & Johnson knows the real damages they caused. In 2018, the company was ordered to pay $4.69 billion to 22 women and their families who used baby powder. They know they did not put enough money into that entity, and they specifically created it to avoid liability.
Corporations abusing our bankruptcy system is not new. Before I came to Congress, I did extensive research on these kinds of predatory, anti-consumer tactics.
Johnson & Johnson is abusing our legal system to shield its assets. This is an injustice and Congress must act.